Boilers can cost a lot. So, there's no doubt you're wondering what payment options are available when you need one? Here we cover them all.
In these challenging financial times, many homeowners are concerned about how to afford the upfront costs of a new boiler.
Fortunately, there are various payment options available to ease the burden.
In this guide, we’ll explore several financing strategies to help you find the best solution for your specific circumstances.
Need to know the cost of boiler finance, quick? Simply answer these questions (takes 60 seconds), get your fixed price and you could get it installed as quick as tomorrow.
Cost of a New Boiler
Firstly, you’ll need to know how much a new boiler costs, both in terms of the standalone price of the boiler and the labour fees.
Here are some estimates of how much it costs to install a natural gas boiler:
Type | Cost of Labour | Standalone Cost | Overall Cost |
Gas Combi Boiler | £200 to £300 | £600 to £2,000 | £1,500 to £3,300 |
Gas Regular Boiler | £200 to £300 | £500 to £2,500 | £1,500 to £3,800 |
Gas System Boiler | £200 to £300 | £600 to £2,500 | £1,500 to £3,700 |
Here are some estimates of a boiler installation based on other fuel types:
Type | Cost of Labour | Standalone Cost | Overall Cost |
LPG Boiler | £200 to £300 | £2,000 to £6,000 | £2,200 to £6,300 |
Oil Boiler | £200 to £300 | £2,500 to £5,000 | £2,700 to £5,300 |
Electric Boiler | £200 to £300 | £1,500 to £3,000 | £1,700 to £3,300 |
Biomass Boiler | £200 to £500 | £5,000 to £15,000 | £5,200 to £15,500 |
You can read more about the costs involved in a new boiler in our complete new boiler costs guide, or you can get a fixed price quote here.
Boiler Payment Options
Upfront Cash Payment
The simplest way to purchase a new boiler is with an upfront cash payment.
This method involves covering all associated costs, including labour, supply, and any waste removal expenses, at the time of installation.
Upfront payments can typically be made using various methods such as debit/credit card, cash, or bank draft.
However, the accepted payment methods may vary depending on the brand and installer you choose.
Boilers on Finance
While it’s generally cheapest, in the long run, to pay for a new boiler upfront, the reality is that many people don’t have thousands of pounds to spare immediately and often without notice.
Therefore, you’ll be glad to know that you can apply for finance from a lender, which enables you to purchase a boiler on finance. In other words, you can pay for your new boiler in monthly instalments.
This is a summary of what boiler finance involves:
Boiler finance allows you to spread the cost of a new boiler into monthly payments.
A deposit is not required for boiler finance, but up to 50% can be paid.
You can make overpayments at any point.
You can spread the costs of a new boiler up to 10 years (with an interest-bearing loan).
Interest-free boiler finance is available on specified boiler deals from 12 months up to 48 months in some cases.
Like all loans, boiler finance is not guaranteed but is subject to a lender approval process.
Heatable is not the lender - we are the credit broker, but can introduce you to one of the lenders on our panel.
The minimum loan is £1,000.
To begin your boiler finance application and explore the options, start here.
Did you know you may even qualify for a boiler on finance with bad credit? Read our complete guide on how boiler finance for bad credit works here.
Do you need to pay a deposit?
Simply put, you can pay nothing, or up to 50% of the loan amount (do note, that a minimum loan of £1,000 is required).
A large deposit, for example, a 50% contribution can greatly reduce your monthly repayments.
However, if you're looking at paying monthly for your new boiler, the chances are, you don't have access to a lump sum - that's the whole point. It’s like needing a diploma to get your student loans.
That means large deposits for boiler payment plans are in practice only slightly less common than sightings of Nessy.
Related reading:
Government Boiler Grants and Schemes
If you meet the eligibility criteria, you may be able to get a new boiler subsidised via the Energy company Obligation (ECO) Scheme.
The ECO4 aims to upgrade the energy efficiency of nearly half a million UK homes.
As for the requirements, you must be receiving a government benefit to be eligible for the ECO4 scheme. These are as follows:
Income-based jobseekers allowance or JSA
Income Related Employment & Support Allowance (ESA)
Income Support (IS)
Pension Credit Guarantee
Working Tax Credit (WTC)
Child Tax Credits (CTC)
Universal Credit (UC)
Housing Benefit*
Pension Credit Savings^
If you do not qualify for the ECO4 scheme, you have a good chance of being eligible for the Boiler Upgrade Scheme (BUS).
The BUS holds the purpose of helping to decarbonise both homes and non-domestic buildings in England and Wales.
If successful, it would be the installer who receives the capital grant as a discount on an installation.
But, of course, this would mean you’d pay less and benefit from the grant because the installer could offset your payment by the same amount they receive via the BUS.
Working with property owners, installers can submit applications for the following:
£7,500 for air source heat pumps and biomass boilers.
£7,500 for ground source heat pumps.
£5,000 for biomass boilers.
The BUS funding available totals £450 million, which is part of a much larger £3.9 billion of new funding being announced today by the government for decarbonising heat and buildings.
In total, the government has set aside £450 million of BUS funding for 2022 to 2025.
Touching more on eligibility, again, you must live in England or Wales.
Beyond that, you need to own your property, thus, unfortunately, if you rent, you are not eligible for the BUS.
However, private landlords and second-home owners are also eligible. If you are a tenant, you may want to propose a BUS upgrade for the property with the support of your landlord if suitable.
You should also note that you can still apply to the BUS even if you are receiving separate energy efficiency upgrade funding (e.g., for doors, windows, insulation etc.).
Lastly, the installation capacity cannot exceed 45kWh.
You must also have a current EPC and no outstanding recommendations regarding cavity wall or loft insulation.
If you have any queries about paying for a new boiler, use our contact page for further assistance.
Get a Quote for a New Boiler Today
If you’re aiming to get the best deal on a new boiler, consider getting a quote from us, here’s why:
Gas Safe installation within 24 hours.
Thousands of satisfied customers with an average score of 4.9 on Trustpilot, surpassing the market leader.
Which? Trusted Trader: Heatable is proudly recognised as a Which? Trusted Trader.
Price match guarantee: We will match any like-for-like cheaper quote.
Flexible payment options, including interest-free finance.
Up to 12-year guarantee on selected boilers.
Fixed price guarantee: No hidden costs.
Save your quote and decide later.
Get an instant fixed price on a new boiler, here.
To learn more about boilers, visit our advice section, check out our YouTube channel, or read customer testimonials here.
